Gemini CEO Tyler Winklevoss believes that the U.S. Federal Reserve is going to be the main driver behind Bitcoin’s next bull run, according to his latest tweet.
“The Fed continues to set the stage for bitcoin's next bull run.”
The “Bitcoin billionaire” made this assumption in response to the Fed’s ongoing effort to cushion the blow from the economic downturn by providing more support.
Mulling over more stimulus
After the U.S. economy started to get decimated in mid-March, the central bank quickly stepped up with monetary stimulus.
On March 16, the Fed cut interest rates to virtually zero and later voted to keep them unchanged until 2022. As reported by U.Today, this decision pushed the Bitcoin price above $10,000 on June 10.
Unlimited quantitative easing is propping U.S. equities despite the fact that some of them are widely believed to be overpriced.
The next meeting of Fed officials, which is slated to take place on July 28-29, will shed more light on how exactly they plan to maintain near-zero interest rates for years to come. They will also discuss whether more stimulus is needed to accelerate the recovery of the U.S. economy.
In the meantime, the U.S. Congress is working on yet another coronavirus relief bill that is expected to be finished this August.
A muted reaction
While central banks are introducing more stimulus, Bitcoin is so far failing to respond with a major price rally.
Meanwhile, precious metals are on a roll, with silver recently surging seven percent and gold aiming for a new all-time high.